The Minister of Finance and Coordinating Minister of the Economy, Wale Edun, has released fresh regulations on withholding tax under the Capital Gains Tax Act, Companies Income Tax (CIT) Act, Petroleum Profits Tax (PPT) Act, and the Personal Income Tax (PIT) Act.
Withholding Tax (WHT) serves as a prepayment of Income Tax, deducted at rates between 5 and 10 per cent depending on the transaction –an advance payment of income tax, which may be used to offset or reduce tax liabilities.
Edun explained that the new regulations, which became effective July 1, 2024, superseded any other regulations in respect of deductions at source or withholding tax.
Captioned “Deduction of Tax at Source (Withholding) Regulations 2024,” the minister said he was issuing the fresh regulations in exercise of the powers conferred on him by Section 81(9) of the Companies Income Tax Act, section 56 of the Petroleum Profit Tax Act, section 73(6) of the Personal Income Tax Act, and of all other powers enabling him.
